Introduction To China & Customs
Spitting is as common as breathing in China, along with a laundry list of other bodily functions that �ou �e�er e�e� k�e� e�isted, so �ou�d �etter get used to it. If their body wants to release something, they believe (and maybe rightly so) that it should be released right the� a�d there ��eddi�gs, �irthda�s, fu�erals, it does��t �atter�.
The stories �ou��e heard are u�fortu�atel� true. The �eirder the a�i�al �a�d �od� part� – the more expensive it is. if you have a �usi�ess di��er i� Chi�a, �ou�ll �e prese�ted �ith a s�orgas�ord of foods straight off the Fear Fa�tor Me�u…or i�dia�a�a jo�es However, if you can muscle through it and take a few bites – your Chinese counterparts will greatly appreciate and respect you. I suggest a blindfold and nose clip for such occasions. Things my clients personally ingested Frog lungs Cow stomach Fish eyes Something from a pig that I could not identify and nobody could reall� e�plai�… Snakes lizards
Think of the worst alcohol you can possibly imagine, and then add some more alcohol to it to make it worse. Something like paint thinner, nail polish remover a�d turpe�ti�e all �i�ed together… That is the best way I can describe Baiju. Chinese businessmen love this stuff, and typically have it served at business dinners. PRO-TIP! Whe� di��er is ser�ed so�eo�e �ill �ost likel� ask �ou �Would �ou like so�e �hite �i�e?�. Do��t fall for this tri�k like I did! This is �ot the �White Wi�e� �ou��e �o�e to k�o� a�d lo�e. This is Baiju tra�slated �er� poorl� (bai(by) = white ju(joe) = wine). Interestingly enough if you order Hongju (Hong = Red and Ju = Wine), you do in fact get Red Wi�e…
Manners The Chi�ese are PAINFULLY polite… This �ea�s e�e� if �ou are �lata�tl� �ro�g or offe�si�e, the� �o��t tell �ou. you should do your best to be as polite as humanly possible to your Chinese counterparts. T hings like ego, impatience, rudeness, outbursts are not well received – and it will do nothing productive for you or your business to act in such a way. The best thing you can do, is bite your tongue, shake your head and smile.
DEALING WITH CHINESE FACTORIES – Things you must know Timing: Many Western people are driven by deadlines and don’t want to adapt to Chinese standards when discussing business. Therefore, understand that when dealing with Chinese factories and when negotiating, take your time, consult internally, and slow down. This will develop a better relationship with the Chinese factory. Chinese negotiators are usually like chess players. They know how long they have to wait or how fast they have to move in order to have a good deal. • Building a relationship will result in a better deal, in most cases. In the western world we normally start off building transactions, and if they are successful, a relationship will result. However, the Chinese are the other way around. They build a relationship first and the transactions follow. • Cultivate guanxi: In most cases, relationships with guanxi will result in better deals, lower price, fast production time, and better dealings overall. Consider this example: Big USA importer compared to an Australian importer
Contract creation in China: Always ensure that a contract is both translated to English and Chinese to ensure there are no vague matters. If there is a legal matter or issue with Chinese suppliers, ensure you get a Chinese lawyer to represent you as usually they are way cheaper, and decisions and judgments are usually carried out faster when solicitors are from the same country. Having the contract in Chinese also does help considerably. The early appearance of a legal contract in a relationship is seen inappropriate, irrelevant, and can destroy a relationship with the Chinese supplier because you were doubting trust. To them, a contract is proof that the relationship has grown to a trusting level. However, more is needed to ensure sustainable import future. Translators fiverr.com and odesk.com
Here are the five main reasons the factories don’t answer your questions: They don’t know the answer themselves: Sometimes, factory needs • to query or get advice or consultation from other factories, authorities, or suppliers. For example, on some electric or motorized vehicles, complaint reports and safety reports need to be generated. However, this can take some time. Sometimes, using a sourcing agent, or having somebody on the ground on China, can assist these matters to push reports and evaluate them and send them to the factory. Your questions are unclear: If a factory didn’t answer your question • or request, partly you are responsible for making your question not clear enough for them. I advise using bullet points throughout your import email correspondence, and at the end, provide summary or action list. Therefore, that ensures you are not vague in your communication. Factory is disorganized or doesn’t care: Simply, the factory is • inefficient or the person you’re dealing with isn’t bothered in your order. (Maybe your order is too small.)
Your question is too complicated or not easy to answer: If the • contact in the factory is a low-level employee, sometimes questions go over their head, either than they don’t understand, they don’t comprehend, or don’t have the technological background to answer the question. • Factories, sometimes, provide quotes just to get your business initially. Once you have paid the factory for a sample, they may reveal to you they don’t have the technology to carry out the order. If this happens, simply move on immediately to a different factory, and only choose factories with good workmanship and have the right outlook and attitude to work for you. To avoid such factories, always ensure progress diary is set up and there is one in the handouts.
Then look through the top sellers and put the products into 1 of 3 categories. Product I can improve Product I can piggyback on Product I can private label
Improvement: Go look at what products are selling and check So after reading the comments I found a lot of out the comments, what are people �o��e�ts sa�i�g… complaining about. Quality, Design, Color, Etc, �Blah Blah Blah, it stopped �orki�g�… I sa� this there are a million things people complain comment at least 75 times about with a product. I click on the 1 star, 2 star, and 3 star reviews :
PIGGYBACK RIDE! Another option is piggybacking on an already existing product, so creating a product that assist you in using an already existing product or helps to make it better
Private Label/White Label The last thing I look at is Private label or white label options. Amazon and eBay have a lot of competition, so products like the magic bullet might have hundreds of sellers. How can you stand out? Easy… Just change the name, it will be listed in the same product category, but instead of being listed in a group of 20 + sellers you will be listed in your own little category.
Use this template for your emails, it is to the point and easy to understand: “Hello, Hope you are having a great day. I have a few questions: 1. What is the MOQ for the Mini Blender 2. What is the cost per piece at this MOQ 3. Can you do OEM? 4. What is the OEM MOQ, only change would be a simple logo. 5. What is the OEM cost to add a logo to blender and box. Thank you so much for your time and I look forward to working with you.” Alex Ryan Managing Director Send this out to at least 10 or 15 ABC Imports Pty Ltd suppliers and then sit and wait…. ABN: 32 5656 989785 PO BOX 1234 Nowra NSW Just KIDDING! Go find more products! I usually try to keep these organized in excel.
Things to know about samples: 1. Samples usually come from a batch ordered by a previous client . So if you get a sample that you love and you tell the factory that you want to order �the sa�e thi�g�, you could receive a product the varies to a small or LARGE degree from the sample in your hand. Why? Well, because the factory may or may not know exactly, which sample that you have in your hand and this sample was based off of another clients specs. Takeaway: Make sure you always have clear specs and a sales agreement before ordering any product.
2. You almost always have to pay for samples . You definitely have to pay for OEM samples and depending on the price tag on the item you may have to pay for standard samples as well. However, if you sweet talk them a bit and the product is in the $10- $75 range you may be able to get a free one, but you will definitely have to pay for shipping. Takeaway: You always pay shipping fees on samples
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